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Sharpe FinanceDID YOU KNOWnext in 7s
The most-called smart contract function across all EVM chains is approve(). The second-most is the one people forget they ran.
Morpho Blue · Aave V3 · 11 chains · scoring refreshed every 5 min
The most-called smart contract function across all EVM chains is approve(). The second-most is the one people forget they ran.
USDT supply on Aave V3 (Ethereum). Read-only on Sharpe — deposits, withdrawals, and borrows execute on app.aave.com. We surface parameters, rates, and risk so you can compare this reserve against Morpho vaults on the same asset cohort.
Plain-English summary of this vault — what it does, who runs it, where the yield comes from, and what could break it. Generated from the same deterministic inputs shown elsewhere on this page; the numbers are the source, this is just the explanation.
You deposit USDT and earn 3.62% APY, paid from the interest that borrowers pay when they borrow against this reserve. Your deposit is lent out and redeemable at the reserve's available liquidity ($206.91M); at 93% utilization, redemption queues become material if withdrawals spike. USDT is enabled as collateral, meaning borrowers can use it to secure loans—Aave will seize it if their positions fall below a 78% loan-to-value threshold. The supply rate is set by borrow demand: borrowers pay 4.35%, Aave takes 10% of that, you receive the rest.
Aave Risk Council and BGD Labs govern this reserve; no pause, freeze, or isolation flags are active. The reserve remains unrestricted and standard.
Supply APY comes directly from borrow demand. At 93% utilization, the reserve is heavily drawn; rates are stable only so long as withdrawal requests don't exceed the $206.91M liquidity buffer. Any sharp redemption wave will create queue delays or force borrow rates sharply higher to rebalance.
Elevated utilization means exit slippage if you need liquidity fast. Tether controls USDT issuance and can freeze accounts or halt transfers, creating a second-order depeg or redemption-risk scenario beyond Aave's control.
Good fit for stable yield if you can tolerate Tether counterparty risk and accept that 93% utilization may constrain exit timing during volatility.
On Aave V3, a supplier can withdraw up to the reserve's available liquidity instantly. Above that, the withdrawal must wait for borrowers to repay or new suppliers to deposit. Markets at 95%+ utilization can keep large redemptions waiting for hours to days at current rates.
Reserve parameters are set by Aave governance (BGD Labs + Aave Chan Initiative + Risk Council). Listings, caps, IRM curves, and LLTVs change through on-chain votes.
On Aave V3, supply APY = borrow APY × utilization × (1 − reserve factor). There is no curator skim; the only intermediation cost is the reserve factor, which funds the Aave treasury. No emissions slice in v1 of this integration — the headline is fully sustainable.
Aave V3 reserves carry parameter risk (LTV/LLTV adequacy vs collateral volatility), liquidity risk (high utilization slows exit), and depeg risk on the underlying. Governance can pause / freeze / adjust caps in response to incidents. Sharpe's full risk decomposition for Aave reserves rolls in v1.1.
How the composite risk score breaks down. Every number traces to an explicit input — /methodology documents each factor's formula.
Per-collateral decomposition: Sharpe-style realized σ from 30 daily log returns, blended 50/50 with the asset-taxonomy tier fallback. Phase 2 will replace the tier slot with liquidity depth, mechanism classification, and holder concentration. Methodology in /methodology.
The honest version. Every structural failure mode this vault is exposed to, ranked by severity. If you want to know whether to invest, start here.
Utilization is 93.0%. Borrow demand is consuming most of the supply, and exit windows for large tickets ($1M+) may briefly throttle as the kinked IRM tries to attract repayment.
USDT is a centrally-issued asset (Tether). The issuer can freeze specific addresses (including aToken holders) and may comply with regulatory demands that affect this reserve. Aave is the secondary-market exposure layer; the primary obligation sits with Tether.